Right now, 40% of all employees are considering quitting their jobs within the next few months.
If America is in a recession — and we are, technically — it doesn’t seem to be slowing down the ever-evolving job market. It is, however, bringing some pretty significant changes. How the economic downturn will continue to affect small businesses, hiring managers, and job seekers is still yet to be known, but we can look to recent history and verified data for some potent, recession-proof practices and how to approach hiring during a recession.
In the last few years alone, companies have watched the job landscape shift from the great resignation, in which millions abruptly abandoned their posts, to the Job Hopper era, and now the new trend of “quiet quitting.” While this recession, like recessions past, will likely lead to an exodus of available talent as businesses begin layoffs, experts in the field are warning that the quitting craze will continue.
“It’s still a candidate’s world. Candidates certainly think it’s still their world in terms of their ability to decide what roles they want – job mobility is not going away anytime soon,” said Evan Sohn, CEO of Recruiter.com in a recent interview.
So how can forward-thinking companies and business owners leverage the recession to find newly-available top talent? By staying on the pulse with trends, and following the compiled advice from the experienced recruiters at Sabio Systems waiting below.
Before Hiring: Assessing your company’s needs.
One of the many benefits of hiring during a recession is that the pool of qualified, experienced candidates suddenly becomes an ocean.
Businesses of all sizes and industries may be tempted to freeze hiring all together during an economic decline, though, and for good reason. For some, potential bankruptcy looms, so growth and expansion aren’t top of mind. But those that are able to refine their efforts, work with professional hiring managers, and recruit effectively are primed to reach premier talent that would otherwise be off the market.
Knowing what your company needs before you start writing your job listing is key to effective hiring and finding the right employee. Start by asking a few simple questions to clarify your company’s goals:
When you’re ready to reach out to the best candidates available, work with a professional recruiter to avoid committing a modern hiring faux pas during the connection process. Then, keep the 4 tips below on your radar as you build relationships with potential hires and scale your business.
1 – Invest in the candidate.
Roughly 4 million employees left their jobs every single month in 2022. In the year prior, wellbeing and trust were major deciding factors for employees quitting, moving to different companies, and leaving industries all together.
This year, compensation has taken center stage.
With the cost of living steadily rising across the country, it should come as no surprise that 63% of American workers left their jobs because the pay was too low. After living through a world-altering pandemic, sky high inflation rates, and now a recession, job seekers aren’t willing to settle for anything less than a company who will care for them emotionally and financially.
Active listening, on an individual and collective level, has always been a crucial facet of the hiring process. Showcase both your attentiveness and investment in the candidate by offering compensation packages that meet current industry standards.
2 – Focus on quality, not quantity.
If the thought of raising compensation packages wracks your nerves, remember that hiring during a recession can also yield revenue-driving rewards. Top tier professionals who are newly unemployed might be available at more affordable rates, and passive recruiting can widen your net.
On the other hand, choosing the wrong hire comes at a considerable cost — to the tune of $240,000 in some cases.
If you’ve written a standout job description, your inbox could quickly become flooded with applicants. Not everyone will thrive working for your business, but the recession buys a little buffer time as many are eager to get back to work. While you should always be respectful of your candidate’s pre-offer time commitment, consider adding an extra round of vetting to ensure your investment goes to the perfect fit.
3 – Work with a professional recruiter.
As more employees become active job seekers, business owners should actually spend more time running their business and less time weeding through low quality candidates. The best way to avoid lowered productivity during hiring is by partnering with a reputable, experienced hiring professional.
The main benefit of working with a professional recruiter, rather than delegating the task to a team lead or upper management, is that this is what they do. They’ll likely have priority access to high quality candidates, and you’ll avoid adding unnecessary strain on your current employees.
4 – Improve employee morale, leverage referrals.
The friends, family, and loved ones of applicants typically know about their newfound availability long before any resume-polishing happens. If your employees are fulfilled in their work, well compensated, and proud to represent your company, their referrals could change your hiring process all together.
Recent data shows employee referral programs offer significant boosts in cost saving, retention, and job acceptance. 45% of hires referred by current team members stay for more than 4 years, and they’re 6.6% more likely to accept the role.
However, if your business is understaffed and your employees are uninspired, those referrals might be hard to come by. Follow the adept advice from Sabio Systems’ experienced recruiters on fixing understaffing, improving employee satisfaction, and welcoming new members to your team.
Connect with a hiring professional at Sabio Systems to jump start your new year with talent that will transform your business.